TICO Registration Requirements 5 — Questions and Answers
Question 1: A sole proprietor registered with TICO decides to incorporate their travel business. What must happen regarding their TICO registration?
- A new registration must be obtained in the name of the corporation (Correct answer)
- The existing registration automatically transfers to the new corporation
- The sole proprietor retains the registration and the corporation operates under it
- No change is needed as long as the business address remains the same
Correct answer: A new registration must be obtained in the name of the corporation
A change in legal structure requires a new TICO registration because the registrant is a different legal entity.
Question 2: Under TICO's rules, within how many days must a registrant notify TICO of a change in the principal place of business address?
- Within 5 days (Correct answer)
- Within 30 days
- Within 60 days
- Within 90 days
Correct answer: Within 5 days
Registrants must notify TICO within 5 days of any change to their principal place of business.
Question 3: Which of the following scenarios would likely result in TICO refusing or revoking a registration?
- The applicant has a past conviction for fraud related to financial transactions (Correct answer)
- The applicant has less than two years of travel industry experience
- The agency does not yet have a GDS subscription
- The applicant operates in a province other than Ontario
Correct answer: The applicant has a past conviction for fraud related to financial transactions
A history of fraud or dishonesty is grounds for TICO to refuse or revoke registration because it reflects on the applicant's fitness to operate.
Question 4: What is the primary purpose of the Ontario Travel Industry Compensation Fund administered by TICO?
- To reimburse consumers who suffer financial loss due to a registered travel agent's insolvency or failure (Correct answer)
- To provide health insurance to travel industry employees
- To fund TICO's regulatory and enforcement operations
- To compensate airlines for unpaid ticket commissions
Correct answer: To reimburse consumers who suffer financial loss due to a registered travel agent's insolvency or failure
The Compensation Fund protects consumers by reimbursing them when a registered Ontario travel agent or wholesaler becomes insolvent or fails to deliver services.
Question 5: A person working from home selling travel services only to friends and family occasionally, without advertising or charging a fee, must they register with TICO?
- No, if they are not carrying on business in travel services for compensation (Correct answer)
- Yes, because any sale of travel services in Ontario requires registration
- Yes, but only if the total value of bookings exceeds $1,000 annually
- No, but they must disclose their unregistered status in writing to each buyer
Correct answer: No, if they are not carrying on business in travel services for compensation
Registration is required only when a person is carrying on business as a travel agent or wholesaler; occasional non-commercial activity for no compensation is excluded.
Question 6: A TICO registrant's key personnel officer is convicted of a criminal offence involving theft. What is the registrant's obligation?
- Report the conviction to TICO as it may affect the registration (Correct answer)
- No obligation, as convictions of employees are personal matters
- Terminate the employee immediately to retain registration status
- File a report only if the offence occurred during working hours
Correct answer: Report the conviction to TICO as it may affect the registration
Registrants must disclose to TICO any changes in circumstances—including convictions of key officers—that may affect fitness for registration.
Question 7: When a registered travel agency is sold to new owners, which of the following is correct regarding TICO registration?
- The new owners must apply for their own TICO registration before operating (Correct answer)
- The registration transfers automatically to the new owners upon sale
- The new owners may operate under the old registration for up to 90 days
- No registration action is needed if the business name stays the same
Correct answer: The new owners must apply for their own TICO registration before operating
TICO registration is not transferable; when ownership changes, the new owners must obtain their own registration before selling travel services.
TICO Registration Requirements 5
A sole proprietor registered with TICO decides to incorporate their travel business.
What must happen regarding their TICO registration?